Why Microsoft’s “No” Vote on Bitcoin Is a Non-Event

Why Microsoft’s “No” Vote on Bitcoin Is a Non-Event

On Tuesday, Microsoft shareholders voted not to add bitcoin to the company’s balance sheet.

As expected, a “no” vote has been a non-event, with the price of bitcoin (BTC) up slightly over the past 24 hours despite the vote against the proposal.

If you’re new to my newsletter, I know this news is disappointing. But I don’t want you to sweat it.

As I wrote in the December 9 issue of Digital Asset Daily, we were making an asymmetric bet on whether Microsoft would start buying bitcoin. And there were one of two ways the decision could play out.

If Microsoft shareholders voted “yes,” we’d see the price of bitcoin and the overall crypto market skyrocket. And if they voted “no,” the news was not priced in, so the price would largely be unaffected.

That’s exactly how it’s played out.

But what about the pullback we saw across the crypto market on Tuesday, you may be asking?

Friends, the volatility we’re seeing in altcoins has nothing to do with the Microsoft shareholder vote. Rather, it’s the result of massive leverage in the altcoin market.

Today, I’ll tell you what’s behind the volatility we’re seeing. And how we’ll take advantage of it… Just like we’ve been doing all year.

“The Hunt for Stops”

On Tuesday, Microsoft held its annual shareholder meeting. During the meeting, shareholders voted against adding bitcoin to the company’s balance sheet.

Again, I know the result is disappointing. But I saw the proposal to add bitcoin as the perfect asymmetric setup.

If Microsoft voted “yes,” we’d see bitcoin explode higher. If it voted no, nothing would change because a “yes” vote had not been priced in.

And how do we know that the vote wasn't priced into the market?

Because when shareholders voted no, the price of bitcoin barely moved. It didn’t drop 15% or 20%, which it would have done if a Microsoft approval had been baked into the price.

In fact, the price of bitcoin is up slightly over the past 24 hours, which tells us the Microsoft news was not priced in.

And that was the beauty of that particular setup: A “yes” vote meant we’d win. And a “no” vote meant we wouldn’t lose.

It was a great low-risk, high-reward play.

Now, I know you’re wondering: “Big T, what about the altcoin market?”

Altcoins have been getting beat up since Sunday night. Major altcoins like Ethereum, Solana and Ripple have been down as much as 13%, 16% and 27%, respectively, from their Sunday highs.

So the altcoin sell-off was happening before the Microsoft vote. That’s how we know the pullback in the altcoin market is completely unrelated to the Microsoft shareholder vote on bitcoin.

What we have been witnessing is a massive “hunt for stops” in the altcoin market.

This “hunt” happens when Big Money knows traders are using a lot of leverage. They push down prices to trigger liquidations. Then swoop in and scoop up coins on the cheap.

That’s what we’ve been seeing play out since Sunday.

Friends, this is why I always caution you against using leverage.

When you use leverage, you’re using borrowed money to invest in the hopes that your gains will be greater than the interest accrued on the money you borrowed.

Long-term investors typically don’t use leverage. This is how they can weather market volatility. They are secure in the knowledge that, over time, prices will recover.

But traders look to profit from short-term moves in an asset. And almost all traders use leverage. The biggest traders can use massive leverage. I’m talking 100-to-1 (borrowing 100 times their own money) or more.

These are the folks who cause market crashes. They get lazy with their risk management and carried away by greed.

When leverage gets too great, Big Money goes on a hunt to force liquidations. That’s what I mean by a “hunt for stops.”

Again, this brief bout of volatility in the altcoin market has nothing to do with the Microsoft shareholder vote. It has to do with this “hunt for stops.”

Once the hunt is over, altcoin prices will rebound. And we’re already starting to see that happen today. In the meantime, we have another chance to take advantage of volatility.

How We’ll Continue to Profit From the Weak Hands

All year, I’ve put positioned you to profit from this type of volatility.

For example, when bitcoin exchange-traded funds (ETFs) launched in January, bitcoin actually dropped from a high of $49,000 to as low as $38,500.

The market totally got it wrong because while they were selling, I was telling my readers to buy, buy, buy.

Just 50 days later, bitcoin hit an all-time high at the time of $73,700. You can see that in the chart below…

I saw a similar opportunity a few months later with Ethereum (ETH).

On May 13, I wrote a Digital Asset Daily essay called “Why Now Is a Great Time to Buy Ethereum.” You can read it right here.

Here’s what happened…

In January, hopes ran high that the Securities and Exchange Commission (SEC) would be quick to approve an ETH ETF by May 23.

In anticipation of approval, ETH prices jumped from a January low of $2,100 to as high as $4,100 on March 11.

Yet, rumors began to circulate that the SEC would classify Ethereum as a security. That would’ve led to greater regulatory scrutiny of the asset.

Investor sentiment quickly shifted from positive to negative… And Ethereum plunged to $2,900 – down almost 30% from its March highs.

Here’s what I wrote at the time [Emphasis added]:

Anyone who bought ETH at that time saw as much as a 41% gain.

Friends, that’s what I mean by taking advantage of volatility instead of letting volatility take advantage of you.

So don't sweat this Microsoft announcement in any way, shape, or form.

It gives us more time to buy high-quality altcoins at lower prices before we see the next explosive move higher, which I believe will occur in 2025.

For the first time ever, we’ll have a pro-crypto administration coming into power. We will have a friendlier regulatory environment. And adoption will continue to increase.

And while Microsoft voted no on adding bitcoin to its balance sheet… Just last week, Amazon shareholders called on the corporate giant to hold at least 5% of the reserves on its balance sheet in bitcoin.

I’m sure we’ll see shareholders in Apple, Google, and every other tech giant follow suit.

These companies have a fiduciary responsibility to protect the value of the capital on their balance sheets. And I believe bitcoin is the best way to do that.

And even if adding bitcoin to their balance sheets doesn’t move the needle for these tech giants, just think of the marketing opportunity in front of them.

Many bitcoin HODLers (holding on for dear life) are young and getting increasingly wealthy. This is the demographic cohort every ad agency wants to attract. I can think of no better way to attract these young wealthy individuals than owning bitcoin.

We’re not there yet. But the day is coming.

Friends, everything I’ve predicted this year is converging to trigger an epic melt-up for the ages. So don’t let this volatility buck you off the ride.

Make sure to use proper risk management so you’re never risking the life you've built in order to get a better life in the future… because you don’t need to.

Let the Game Come to You!

Big T